Low-multiple long-term contracts VS pledged lending

In the current bull market, many people like to hold spot and open currency-based contracts for medium and long-term investment

But pledged lending may be a better choice.

Net annualized interest rate - annualized interest rate = actual interest

You can see that the actual annual interest rate is less than 0.1%

The funding rate in the contract is calculated at 0.02% for a day, 0.06%

22% handling fee for a year (most of the bull market starts at 0.02%)

Funding rate X leverage multiple = actual fee

(20 times leverage for a year, handling fee is 440%)

Although borrowing can only lend 78% of the assets, repayment only requires 78% to redeem the assets

The risks of the two are:

1. Borrowing will force liquidation of your assets when the assets fall by about 15%

Of course, you don’t have to repay (the concept of forced liquidation after a 15% drop)

《Previously, it was tested that it fell by 20% and was not liquidated... a bit mysterious》

2. Contracts can use leverage of 2 to 125 times. Of course, I don’t need to say much about the risks and profits of contracts. One is to lend you 78% of the assets in cash for trading, and the other is to lend you 100% leverage for high volatility.

Note: If you don’t want your assets to be liquidated during lending, you can also add assets (the same principle as adding margin to contracts). If you like lower risks, you can borrow U to buy spot. This is very cost-effective. It is not risk-free, but an alternative choice of leverage. This type of operation should be operated as much as possible during a big crash and callback, so as to maximize the bottom-fishing profit! $BNB $ENA